Clean Fuels Alliance America and its members asked EPA to propose and finalize the 2026 biomass-based diesel (BBD) volume at 5.25 billion gallons and the 2027 BBD volume at 5.75 billion gallons -- volumes that are consistent with built U.S. production capacity and available domestic feedstock supplies. It is also consistent with growing demand from U.S. markets, including rail, aviation, and marine.

EPA's proposal recognizes the industry's capability of meeting the volumes and continuing to grow through 2030. The proposal signals the agency's intent to support robust growth in biomass-based diesel volumes. But EPA is proposing multiple changes to the RFS program that must be carefully considered in order to support the industry's growth.

EPA also subsequently granted more than 175 small refinery exemptions, relieving them of obligations on close to 6 billion gallons of gasoline and diesel for 2023 and 2024 compliance years. The RIN credits associated with those obligations can now be rolled forward or sold to others for use in future compliance years. 

EPA in September issued a Supplemental Proposal to increase the 2026 and 2027 RFS obligations to retroactively account for the 2023, 2024 and estimated 2025 exemptions. EPA is also prospectively accounting for potential 2026 and 2027 exemptions, using the same estimate as for 2025. EPA's supplemental proposal is intended to maintain the step change in 2026 BBD volumes and ensure consistent growth for the future. Clean Fuels' analysis shows that America's farmers risk losing as much as $7.5 billion if EPA fails to reallocate the exempted volumes. 

Please contact EPA Administrator Lee Zeldin to express appreciation for the proposal and emphasize the urgent need for EPA to quickly finalize 2026 RFS volumes.